Investec Aviation Finance and BayernLB Sector Aviation & Space agreed to a $130.2m (€119m) deal to finance 15 mid-life narrowbody aircraft managed by aircraft lessor Aero Capital Solutions (ACS).
Investec acted as a structuring agent, mandated lead arranger and a lender and BayernLB acted as mandated lead arranger and a lender to finance a mix of Boeing and Airbus passenger and freighter aircraft on lease to airlines globally.
Lukasz Laski of Investec Aviation Finance said: “Our latest Aviation Market Snapshot found that strong passenger demand, combined with production and certification delays, has created significant backlogs in aircraft delivery.
“This has meant we’ve seen healthy demand in the market for mid and end-of-life aircraft – and we are pleased to leverage our deep technical asset expertise to help service that demand. This transaction marks the latest step in our relationship with ACS and we look forward to continuing to work together in future.”
Viktor Berta, Director of Aviation & Space at BayernLB, said: “This transaction is a significant milestone, representing our first structured facility financing mid-life aircraft and adding a strategically important client. The mid-life space involves specific risks and considerations and requires specialist skills.
”The age and physical characteristics of the collateral portfolio necessitate an understanding of the relevant leasing and part-out market dynamics and require a structure that accommodates the client’s strategy while providing the lenders with a robust security and collateral package.”
Ricardo Ramos, Executive Vice President – Investments at ACS, said: “We are pleased to expand our relationship with Investec and to add BayernLB to our banking group and look forward to building a lasting relationship with both banks.”
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